The problem is worse in San Francisco and New York City, where one industry expert estimated that 20 percent of iPhone users live.

The result is angry AT&T customers -- who pay the company almost double what the average cell phone user does -- suffering dropped calls, delayed text messages and over all spotty service.

AT&T admits it has delayed the ability to use bandwidth-heavy features such as tethering, the ability to send and receive text messages with pictures and video, until the company strengthens its networks to avoid further darkening its reputation.